Do I really need an appraiser?

Whether you are buying or selling a home, there are many good reasons for using the services of a professional appraiser. The purchase (or sale) of a home is likely the largest financial transaction most people will make in their lives, and often involves strong emotional attachments and preferences. It is important that each of the parties involved believes that they are engaged in a fair and equitable transaction, and the involvement of the appraiser as an independent, disinterested professional helps to ensure that the home is really worth the sale price. Other reasons for having an appraisal include: Obtaining a loan; lowering your tax burden; establish the replacement cost for insurance; to contest high property taxes; to remove PMI insurance.

What can an appraiser do for me?

An appraiser, depending on his qualifications, can perform many different services beyond establishing the market value of your home. These services may include:

• Commercial, Agricultural, and Industrial appraisals

• Counseling or consulting services

• Expert witness testimony

• Loss valuation testimony

• Tax assessment review

• Zoning appeal testimony or counsel

What is a typical appraisal like?

There are many types of appraisal services, and each has specific requirements which must be followed. However there are several steps involved in most residential appraisals which are:

• Interviewing the owner and the most knowledgeable people about the home.

• An inspection of the home and the surrounding area.

• Assessment of the usability and functionality of the home, as well as determining any undesirable aspects of the home itself or it's location.

• Inspection of the homes interior, including determining the actual dimensions and condition of the home, as well as making note of special characteristics.

• A determination of the recent actual selling prices of similar homes in your area.

• Preparation of a detailed report, the appraisal, containing the required information for submission.

What can I do to speed up the appraisal process?

There are several pieces of information which, if available, will help your appraiser make a swift and accurate judgment on the value of your home. These may include;

• When you purchased the home and what you paid for it.

• A copy of your most recent property tax bill.

• A copy of the deed or title report containing the legal description of your property.

• The floor plan of your home, preferably including any additions or modifications made since the home was originally built.

• A list of all personal property which is to be sold with the house, assuming of course that you are selling it.

• Any other information you may have about your home which may influence the value.

What exactly is PMI and how can I get rid of it?

PMI stands for Private Mortgage Insurance. It insures a lender against loss on homes purchased with a down-payment of less than 20%. Once equity in the home reaches 20% you can eliminate the PMI and start saving immediately. For an alert from the Federal Trade Commission click here: www.ftc.gov/bcp/conline/pubs/alerts/pmialrt.pdf

Can I get a copy of an appraisal my lender ordered on my home?

There are several laws regarding the confidentiality of appraisals which may restrict the appraiser from providing you with a report commissioned by your lender. However, you may also have legal rights to obtain a copy from your lender.

Where does an appraiser get the information used to estimate value?

Gathering data is one of the primary roles of an appraiser. Data can be divided into Specific and General. Specific data is gathered from the home itself. Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection.

General data is gathered from a number of sources. Local Multiple Listing Services (MLS) provide data on recently sold homes that might be used as comparables (comps). Tax records and other public documents verify actual sales prices in the market.

What is a "comp"?